A new code has been published for the private rented sector.
Endorsed and commissioned by the Government, it has been put together by the RICS with a number of other bodies, including ARLA, the deposit protection schemes and the ombudsmen services
While parts of it relate to mandatory legislation, most of the code is voluntary – setting out a model for best practice – and applies to both landlords and agents.
ARLA managing director David Cox said: “A mandatory Code of Practice to improve the private rented sector is something we feel very strongly about.
“The new Code is a step in the right direction which ARLA fully supports, and we would also like to see a fully regulated industry to help build a better, strong private rented sector.”
A new model tenancy agreement has also been launched by the Government, allowing for a three-year tenure.
Some key points of the code are:
* It says landlords should choose agents who are members of an accredited body; belong to an independent redress scheme; have client money protection; and have insurances such as professional indemnity.
* On agents’ fees, it says that these must be published on agents’ websites and “displayed prominently in all offices where customers enter”.
* All fees should be stated inclusive of tax – in other words, they should not be stated as, for example, “£100 plus VAT”.
* Agents who are in the process of agreeing a letting with a tenant should provide the tenant with a copy of a document produced by the Government earlier this year: https://www.gov.uk/government/publications/how-to-rent
* Agents should keep client money separate, in a dedicated client account which should be in credit at all times and kept in an FCA-authorised bank or building society. Any interest earned on client money should be credited to the client or tenant.
* On repairs and maintenance, agents should declare any commission received from the contractor at the time that estimates for work are provided to the landlord.
* Carbon monoxide detectors should be provided in all properties with a gas or solid fuel appliance.
* Electrical certificates should be provided to the tenant. Full wiring tests should be carried out every ten years (five years in HMOs). There should also be regular portable appliance tests (PATs).
* On access – if the tenant refuses this, neither landlord nor agent can enter without a court order.
The 32-page code can be found here:
The link to the new model tenancy agreement also launched is here:
https://www.gov.uk/government/publications/model-agreement-for-a-shorthold-assured-tenancy
I also feel very strongly about regulation and welcome it with open arms, so when it comes in I look forward to seeing ARLA and others, visiting all the offices under their scheme to make sure the agents are complying with the so called standards they are trying to promote.
Unless they can show they do that already? But from my conversations with them they only visit if they identify a problem or there is a whistle-blower. How will they make sure that their members are complying?
If you want to be a big gun you need to start using your ammunition and regulate your member agents 😉
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I think all reputable operators like ourselves in the lettings industry feel strongly that we should be regulated.
However, I am concerned that the new code of practice linked with the Housing Minister's proposed model for a 3 year tenancy agreement are giving too much control to tenants. A 3 year tenancy coupled with the requirement for a court order to gain access if denied by a tenant has all the makings of difficulties for the future.
The code of practice of how we operate as letting agents (and any future regulatory control) should be separated from proposed legal changes to prior Housing Acts but looked at as a combined package to ensure it is fair to all parties (agent, landlord and tenant).
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How are we supposed to share out the small amount of interest, just nine pence this month on the rent account?
Can we see ARLA make it mandatory for all their members to only offer three year tenancies and see how soon they all either go bankrupt or leave ARLA.
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Wow! The Government's new model tenancy agreement – the Janet and John version! The RICS link isn't working, so haven't looked at the full code yet, but the points above all look fair and reasonable, with the exception of the one about interest earned on deposits. The amounts are piddly with current interest rates, but who on earth is going to do the calculations. If this became mandatory, I'd make sure to find an account that doesn't pay interest! Any agent that does do the sums is bound to make a charge to the client for doing so, and that's bound to outweigh the amount of the interest. At the end of the day, so long as it is agreed in writing with the tenant and landlord as to what will happen to any interest generated, it should not be a matter for Government intervention.
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And on the access point, that's already the law.
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Since when were client accounts interest bearing accounts? Mine isnt.
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Not the client current account, the client deposit account.
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Much of this is regurgitating existing laws/best practices/guidance – but it is not enforced. So by whom, how and when will this official code be enforced? Are ARLA going to go around and check all those naughty boys with the expensive window stickers and tell them they are not following the ‘official code’? No way are they going to upset anyone buying their stickers who also (in my area) happen to wear 10 gallon hats and have spurs on their boots!
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